The section below describes often used terms in the context of the dApp.
A smart contract containing the combined amount of funds collected from all fees of the insurances to all projects, the project owners’ collateral deposits and other types of payments in the dApp’s ecosystem. The collective refund pool is used to refund investments of investors that have contributed to a specific project that has been failed, abandoned, terminated or there has been a huge fall in its token value.
A carefully filtered, researched and assessed by the analysts of the ICO-Refund.com early stage blockchain project conducting a crowdsale. Only covered projects are eligible for an investment insurance. Stored and managed entirely on-chain by the dApp’s smart contracts.
Secured with a refund option amount of funds, a percentage of the total investment made in a public sale of a project. If the project turns out to be unsuccessful - for example in case of abandoned, terminated or failed projects and token value drop - the secured amount of the insured investment is refunded to the investor.
For example, if Bob invests 10 Ether in the ICO ‘ProjectX’ and the current protection rate of the project is 90% - when Bob makes his insurance he will have 9 Ether secured. In the eventual case of ‘Project X’ failure of any kind, this is the amount that Bob will get back.
Every Ethereum account can make only 1 investment insurance per project.
Insurance can have a number of different conditions, depending on the user actions and the state of the project:
Active- the default insurance status after it’s made. An investor with active insurance is eligible for voting and investment refund;
Canceled- when the investor cancels his investment protection and withdraw its fee. Not eligible for voting over a project state and refund of investment;
Suspended- Insurance can be suspended if the owner has traded his project tokens without canceling his insurance, or in case of a false/malicious vote in an internal vote;
Refunded- Assigned after the investment secured with that insurance is refunded to his investor;
Expired- Assigned after the 2-year insurance policy expiration if there were no conditions for a different status to be assigned during that time, for example, if the project hasn’t had to be refunded.
The percentage from the whole investment that will be secured (insured). Every project has a floating protection rate between 95% and 75% depending on the total amount of funds secured for it at the moment, and the amount of owners’ collateral deposit made to the refund pool.
Every project starts with 95% protection rate. When new insurances are requested, that percentage goes down. Project owners can boost that percentage by depositing collateral to the collective pool of funds. The minimum protection rate is 75%.
Owners and supporters of a project can help the potential investors by making a special kind of collateral contributions to the collective pool. This way, besides contributing to the ecosystem as a whole, they also make a claim about their commitment and belief in their project.
This type of pool payment is a collateral deposit and it is repaid back to them over time if the project is not abandoned, terminated or failed. In the opposite case - if the investors’ funds have to be refunded, the project owners do not get their pool contributions back.
When an owner or supporter deposits a collateral payment protection rate of the project, meaning that the next investors will be able to secure with a refund insurance a bigger portion of their investment to the project.
The only way for an ICO/STO to get better visibility (premium listing) on ICO-Refund.com is when its supporters and/or owners help the potential investors by supporting the collective pool of funds used for refunds and increase the protection rate of the project with a collateral deposit.
The withdrawal of the collateral deposit is divided into 2 parts. Half of the funds are repaid to the owner/supporter after 1 year of the project coverage passes, the other half when the extended 2-year project coverage expires - if the project is not settled as failed during that period.
The dApp’s experts, analysts, and moderators do NOT have the ability to take any money for V.I.P/Premium/Gold listings, special placements, ratings, review scores and such, as opposed to the other ICO listing web sites, platforms and the enormous amount of corruption in the ICO ecosystem as a whole.
Supported projects are the ones that have received collateral payment from their owners and supporters. The only way for a project to get a higher placement and more exposure (‘premium listing’) on ICO-Refund.com is to be a ‘Supported Project’.
They are displayed higher in the listing and on the front page of ICO-Refund.com, ordered by the amount of collateral deposit contributed to the collective pool by their owners and supporters. The collateral deposits are made and managed via smart contracts on the Ethereum blockchain. This method prevents the possible occurrence of corruption practices, bought ratings or paid reviews.
Instead of sending the money to the owners of some listing website to get better placement and more exposure, here the owners have a real, positive impact, helping their investors, potential investors, and the community as a whole.
The same as ‘pool contribution’ and ‘insurance fee’. When used by itself, the word fee is generally referring to an insurance fee - one-time payment to be made when requesting new investment insurance. Goes to the collective pool of funds used for investment refunds - the refund pool. The pool contribution for regular users is 20% of the investment, the referred ones have a 10% discount.
The same as ‘fee’ and ‘pool contribution’. One time payment to be made when requesting a new investment insurance that goes to the collective pool of funds used for investment refunds - the refund pool.
The same as ‘fee’ and ‘insurance fee’. One time payment to be made when requesting a new investment insurance that goes to the collective pool of funds used for investment refunds - the refund pool.
The 2-year time period, during which a project is covered by the dApp. During the time frame of the covarage, the investments to the project are eligible for a refund. The policy is divided on 2 stages - base and extended.
The first year of the project coverage. If the project is failed, abandoned or terminated during that time, the investors get the full secured amount of their investment protections.
The second year of the project’s coverage policy. If a project is failed, abandoned or terminated during that time, the investors get refunded 50% of the insurance’s secured amount.
The same as ‘investment insurance’. Secured with a refund option amount of funds, a percentage of the total investment made in a public sale of a project. If the project turns out to be unsuccessful - for example in case of abandoned, terminated or failed projects and token value drop - the secured amount of the insured investment is refunded to the investor.
A project’s state is a stage of the project lifecycle depending on how much time has passed from his coverage and the condition, determined by the actions (governance) of the investors in it.
Let’s take for example the first 3 project states -
Vote in Progress. When the project is initially added to the dApp it gets assigned
Open state. That means it is open for new insurance requests. That
state continues until about 2 weeks after the end of its token sale, then
it is switched to
Active state is the default
status of a covered project if it’s not under
some type of governance (voting).
During an Active state, if there is something wrong with the project,
the investors can vote for a refund state. If more than 15% of them do
so - it the project will be assigned a
Vote in Progress state that will
continue for 3 months. After that, the result will be processed and a
new state will be assigned according to it.
All possible project states in the dApp:
- Vote in Progress;
- In Dispute;
- Refund in Progress;
- Refund Completed;
A mean of project governance (control) over a project’s state exercised by the investors that have active investment insurance. Because the dApp is built as a decentralized autonomous organization, the decisions for its governance are made not by a single individual or centralized group of people in power but by the consensus of the participants in the platform.
When an investor in that project requests a refund state he is voting that a project has failed. When 15% or more of the total number of investors in the project do so, it enters a 3 month internal voting period. At the end of that time span, the voting period is ended and the results are processed to determine the project status.
Multiple internal votes can take place during the lifecycle of the project coverage on the dApp, so even if the first one does not settle the project as ‘failed’, the state can be voted over again later in time.
The only requirement that has to be met for a refund state request (internal vote for a project failure) to be valid is sending the project tokens received in exchange of the investor’s investment in the project to a unique ‘token litter’ address created by the dApp and assigned to his investment insurance.
This action is required in order to prevent project state manipulations and false voting. If the project is considered by the investor as failed he no longer needs his worthless project tokens. When the investor votes for a refund state the dApp check’s his ‘token litter’ address for the returned tokens. If they are received - his vote is counted and the refund request - valid, otherwise - it won’t be accepted.
The internal vote can be one of 2 types, depending on the number of the voters compared to the total number of investors with active investment insurance in the project:
- Minor Internal Vote - If less than 51% of the total number of investors have requested a refund state (voted that the project has been failed);
- Major Internal Vote - If more than 51% of the investors requested a refund state during the voting period.
After a major internal vote is finished its result can be disputed in a higher level (instance) of voting - a public vote by the community.
Dispute (public vote)¶
Open, public, external, voting by the community over a failure state of a project. The dispute is a higher instance of voting in the dApp. You can compare a dispute to an appeal of a court case (the internal vote) on a higher instance, where the jury is the whole outside crypto community.
Depending on the general consensus of the vote, the dispute result can either overturn the decision of the investors from the internal vote or confirmed it. That means if an internal vote has been successful but its result was overturned by the community in open voting during the public dispute, the internal vote will be considered unsuccessful.
Disputes always have at least 1 public URL provided by its creator and stored on the blockchain by the dApp. It must contain information about the progress of the project, news, dev activity, token price and so on. The dispute’s rules are handled by smart contracts and its data - stored on the Ethereum blockchain.
Voting in public disputes is free, only small collateral is required as basic security and validation measure. It is repaid back to the owner when the voting is finished if his vote matches the general consensus (decision) of the vote. Participation is incentivized by a dispute lottery prize.
Forced refund state¶
When the project state is set as ‘Refund in Progress’ by a moderator and not by internal vote by the investors. The platform moderators can do that to spare the investors the need of voting over the project state. The forced refund state can be overturned by a public vote, if disputed.
Moderators can only force a refund state to a project once and do NOT have the ability to do the opposite - revoke a refund state, in case one has been already assigned.
Dispute lottery prize¶
There is a dispute lottery with a prize at the end of every public vote to encourage the participation of more people from the community. The lottery prize depends on the size of the project (amount of funds secured for it) - it’s 5% of the total pool contributions paid for investment insurances in the project.
After the results of the public dispute are processed there is a lottery draw and 1 random winner is picked. If that person’s vote is correct - in other words matches the general consensus of the dispute, he can withdraw his price, if not - the winner picked is the voter with the closest ID which vote matches the decision of the dispute.
The freeze state is a 1 week timeout period set after a major internal vote or forced by a moderator refund state. During that time a public community vote can be requested to dispute the results from the investors’ voting. If no dispute is invoked during that time - the project coverage lifecycle continues as determined by the result of the internal vote.
The ‘token litter’ is a unique Ethereum address created with every insurance. It’s not a fully functional account, only a one-way destination for project tokens of an investor that wants to request a refund state (vote for a project failure).
It has no private key generated, no one has access to whatever is inside of it and its sole purpose is to serve as a container that can be check by the dApp whether the investor requesting a refund state of the project that has supossedly failed, handed over his now worthless project tokens.
User role that has the ability to trigger certain community functions, designed to help the investors with the project governance - such as manually assigning a refund state (marking a project as failed). At the moment there are only one type of moderators in the dApp ‘platform moderators’ - the monitoring staff that follows and observe the progress of already added covered projects.
DAO implementation upgrade that will introduce a second type of moderators - ‘community moderators’ is currently under active development.
Although the moderators can force a refund state on a failed projectm, that action is not irreversible - it can be overturned by a public vote - a ‘dispute’.
It is also important to note that although a moderator can mark a project as failed to help the investors skip the process of internal voting over the project state, a moderator can NOT do the opposite - change a state of a project already voted to be ‘failed’ to ‘not failed’.
Net Collateral Contribution¶
The net amount of the supporter’s collateral deposit is the initial payment after the platform commission has been deducted from it.
The platform commission percentage earmarked from the collateral deposits is depending on the size of the project - the total secured funds for it and the size of the collateral payment.
|Amount of secured Ether (ETH)||Total Collateral Payment (ETH)||Net Collateral Deposit (ETH)|
|> 88.0000 & < 288.0000||7.0000||5.0000|
Platform commission is a part of the investor’s pool contribution and the supporter’s collateral deposit that gets earmarked to the platform resources account. This account is used to:
- Supply with gas the Ethereum account that automatically triggers on a certain interval of time a set of utility functions, responsible for maintenance tasks related to the dApp’s functionality;
- Fund the front-end servers and other infrastructure;
- Fund other platform related operations, such as development, project research and monitoring, marketing;
RefundEther token - rETH¶
Internal non-tradable token of the dApp used as an indicator for a secured amount
of funds. It’s pegged at 1:1 ratio to Ether -
1 ETH = 1 rETH and
1 wei = 1 rwei. The total supply when deployed is
and the only way to mint new tokens is by the creation of new insurance.
The internal RefundEther token is used only as an indication unit, meaning that at no point in the dApp’s functionality there is a conversion of funds from ETH to rETH. All funds are stored and refunded only in Ether.
An indicator of the current condition (liquidity) of the collective pool of funds used for a refund of protected investments. The easiest way to understand the refund pool health indicator is the following calculation:
If the pool has the capacity to refund 12.5% or more of all insured investments (to all projects) AT ONCE, then it has 100% liquidity. For every 0.1% less capacity, its health is decreased by 1%. For example, if the total secured amount of investments for the moment is 1000 Ether and the current refund pool balance is 110 ETH then the refund pool health will be 85%.